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Spectranetics Corporation Achieves First Quarter 2015 Revenue Of $57.4 Million

Published: Apr 24, 2015

Expands Stellarex™ Program to Below the Knee Market

Updates 2015 Outlook

COLORADO SPRINGS, Colo., April 23, 2015 (GLOBE NEWSWIRE) -- The Spectranetics Corporation (Nasdaq:SPNC) today reported financial results for the three months ended March 31, 2015. Highlights of the quarter, all compared with the three months ended March 31, 2014 include:

  • Revenue of $57.4 million, up 45% (47% constant currency1)
  • Vascular Intervention revenue of $36.5 million grew 82% (84% constant currency)
    • U.S. peripheral atherectomy revenue grew 16%
    • AngioSculpt® revenue of $14.0 million achieved
  • Lead Management revenue of $16.4 million increased 14% (16% constant currency)
  • U.S. revenue grew 53% to $48.6 million; International revenue grew 12% (24% constant currency) to $8.8 million
  • Record placements of 54 laser systems
  • Stellarex program expands to below the knee (BTK) market; Investigational Device Exemption (IDE) discussions underway with FDA; Stellarex BTK European launch planned in late 2016
  • CE submission on Drug-Coated Coronary AngioSculpt®; targeting mid-2016 European launch

"Solid execution across commercial, clinical and new product development is evident," said Scott Drake, President and Chief Executive Officer. "Our Lead Management and International businesses continue with solid double-digit growth. Our Vascular Intervention portfolio is profoundly strengthening, especially in our drug-coated balloon (DCB) platform, and record laser placements bode well for future growth. Vascular performance is generally on track, yet scoring balloons in the United States are feeling the effect of recent competitive DCB launches. Given recent launches, it is difficult to predict long-term impact, therefore we are guiding investors to the low end of our previously provided outlook."

Net loss for the three months ended March 31, 2015 was $27.3 million, or $0.65 per share, compared with net loss of $5.7 million, or $0.14 per share, for the three months ended March 31, 2014. Non-GAAP net loss1, which primarily excludes acquisition-related items, for the three months ended March 31, 2015 was $12.5 million, or $0.30 per share, compared with non-GAAP net loss of $5.2 million, or $0.13 per share, for the three months ended March 31, 2014.

2015 Financial Outlook

Spectranetics management continues to project revenue in the range of $258 million to $265 million, an increase of 26% to 29% over 2014, but is guiding to the low end of the range. The revision reflects the potential impact of DCB products recently launched by competitors on the U.S. AngioSculpt business. As a result, Vascular Intervention revenue is anticipated to be at the low end of the previously provided 41% to 46% range. More specifically, AngioSculpt revenue is projected in the range of $59 million to $66 million, compared with previous outlook of $62 million to $66 million. The remainder of our revenue outlook is unchanged, including ISR revenue of $15 million to $20 million, and Lead Management revenue of 8% - 10% growth compared with last year.

Net loss for 2015 is projected to be within a range of $78.0 million to $82.0 million, or $1.84 to $1.93 per share, compared with $58.0 million to $62.0 million, or $1.36 to $1.46 previously provided. The increased net loss consists of approximately $14 million of incremental spending associated with the Stellarex program and $6 million of increased costs related to litigation with TriReme Medical, Inc.

The projected net loss from the Stellarex program has been increased from approximately $30 million, or $0.71 per share, to approximately $44 million or $1.04 per share. The increased costs are primarily due to accelerating the BTK program, and non-recurring integration costs. Management estimates launch of the Stellarex BTK product in Europe in late 2016 and has submitted a pre-IDE application to the Food and Drug Administration to support a randomized clinical trial in the U.S.

Non-GAAP net loss for 2015 is projected to be within a range of $41.3 million to $45.3 million, or $0.97 to $1.07 per share, compared with $31.9 million to $35.9 million, or $0.75 to $0.84 per share previously provided. See "Reconciliation of non-GAAP Financial Measures" later in this release. Additional details supporting the 2015 outlook are provided below:

  • Gross margin is unchanged and expected to be within a range of 74.5% to 75.0%. This includes improvement of approximately 50 basis points within the current business, which is offset by the dilutive impact of approximately 50 to 100 basis points associated with establishing manufacturing operations for the Stellarex product line.
  • Research, development and other technology expenses are expected to be approximately 27.0% to 28.0% of revenue, revised from 25.5% to 26.0% provided previously. The increase is entirely due to costs associated with the Stellarex program.

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 1Constant currency and non-GAAP net loss are non-GAAP financial measures. See "Reconciliation of Non-GAAP Financial Measures" later in this release.

Conference Call

Management will host an investment community conference call today beginning at 2:30 p.m. MT / 4:30 p.m. ET. Individuals interested in listening to the conference call may dial (877) 561-2747 for domestic callers, or (973) 409-9689 for international callers, conference ID 19910355, or access the webcast on the investor relations section of the Company's website at: www.spectranetics.com. The webcast will be available on the Company's website for 14 days following the completion of the call.

About Spectranetics

Spectranetics develops, manufactures, markets and distributes medical devices used in minimally invasive procedures within the cardiovascular system. The Company's products are sold in over 65 countries and are used to treat arterial blockages in the heart and legs and in the removal of pacemaker and defibrillator leads.

Spectranetics recently acquired AngioScore Inc., a leading developer, manufacturer and marketer of cardiovascular, specialty scoring balloons, and the Stellarex drug-coated balloon platform from Covidien.

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